P11.54B (LO 4) Alosio Manufacturing Company manufactures a variety of tools and industrial equipment. The company operates three divisions. Each division is an investment centre. Operating data for the home division for the year ended December 31, 2020, and relevant budget data are as follows: Prepare a responsibility report for investment centre, and calculate ROI. Comparison with Actual Budget Sales $1,400,000 $ favourable 100,000 Variable cost of goods sold 675,000 55,000 unfavourable Variable selling and administrative 125,000 25,000 unfavourable expenses Controllable fixed cost of goods sold 170,000 On target Controllable fixed selling and 80,000 On target administrative expenses Average operating assets for the year for the home division were $2 million, which was also the budgeted amount. Instructions a. Prepare a responsibility report (in thousands of dollars) for the home division. a. Controllable margin: Budget $330,000; Actual $350,000 b. Evaluate the manager's performance. Which items will likely be investigated by top management? C. Calculate the expected ROI in 2020 for the home division, assuming the following independent changes to actual data: 1. The variable cost of goods sold decrease by 5%. 2. The average operating assets decrease by 10%. 3. Sales increase by $200,000, and this increase is expected to increase the contribution margin by $85,000